Today, information technology (IT) plays a vital role in the field of textile industry. Any manufacturing unit employs four M’s, ie Men, Material, Machine and of course Money. To achieve organizational success, managers must focus on synchronizing all of these factors and developing synergies with the organization’s internal and external operations. With increased competition, companies are turning to IT to improve their supply chain management (SCM) and use it as a competitive advantage. In short, many textile companies are harnessing the power of technology to add value to their business.

Supply chain management includes: sourcing, procurement, converting, and all logistics activities. It seeks to increase the speed of transactions by exchanging data in real time, reduce inventory and increase sales volume by meeting customer requirements more efficiently and effectively.

Why do textile industries need IT support?

Lack of information on aspects of demand and supply.

Most of the decisions a manager makes are related to supply and demand issues. But unfortunately very few are able to achieve it, so the decisions that are made carry risk and uncertainty. Excess inventory is one of the most common problems managers face, resulting in long cycle time, out-of-date stock, poor sales, low rates and reduced order visibility, and ultimately, leads to customer dissatisfaction.

Long acquisition time

In a traditional textile industry, the procurement process takes much longer. Therefore, retailers need to forecast demand and identify consumer trends at a much earlier stage. Lack of clarity about the future can result in early stockouts, delays, or overstocking.

Competing supply chain

With the need to go global, apparel and textiles face hurdles of inefficiency in performing various processes involved from design, sample development, getting approval, manufacturing and shipping to payment procedures. The total time taken can extend to a year or even more. If we calculate, the production actually represents only ten to twenty percent of the total time. The rest of the time is spent processing the information from one end to the other.

The trajectory of information technology development has crossed all applications in the textile industry. From improving textile manufacturing performance and tighter process control, TI has embedded intelligence at every node in the textile supply chain.

Enter global trade

It is a fact that a company that goes global opens up with many opportunities and threats in terms of competition, changing trends and other environmental changes. It requires managing all kinds of information efficiently and at a much faster speed.

Information technology interaction with the textile supply chain

Share information

The proper flow of information between members of the supply chain is very important. Such information flow can influence the performance of overall supply chain operations. It includes data about customers and their demand, inventory status, production and promotion plan, shipping schedules, payment details, etc. Bar coding and electronic data interchange are the two information technology tools that can facilitate the integration of information.

Barcodes make it easy to record detailed data by converting it to electronic format and can be easily shared among members through the EDI system. EDI, with its high efficiency, can replace traditional forms of transmission such as telephone, mail, and even fax. EDI allows managers to analyze and apply it in their business decisions. It also helps speed up the order cycle which reduces inventory investment. The EDI-based network enables the company to maintain quick response and close relationships with suppliers and customers, who are geographically dispersed. Manufacturers and retailers can even share new designs developed through CAD/CAM.

Support operations planning and execution.

Planning and coordination are very important issues in supply chain management. The next step after information sharing is planning, which includes joint design and implementation for product introduction, demand forecasting, and replenishment. Members of the supply chain decide their roles and responsibilities, which is coordinated through the IT system.

Various software tools like MRP, MRP-II, APSS facilitate planning and coordination between different functional areas within the organization.

Material Requirements Planning (MRP): Helps manage manufacturing processes based on production planning and inventory control system. The proper implementation of MRP ensures the availability of material for production and product for consumption at the right time, optimizes the level of inventory and helps to schedule various activities. The MRP system uses computer databases to store lead times and order quantity. MRP mainly includes three steps: first assess the requirement of how many component units are required to produce a final product; here you apply logic to implement bill-of-materials (BOM) explosions. The second step involves deducting the stock on hand from the gross to find out the net requirement. Finally, schedule the manufacturing activities so that the finished products are available when they are required, assuming the delivery time.

The Manufacturing Resource Planning (MRPII) system is a logical extension of the MRP system that covers the entire manufacturing function. This typically includes machine loading, scheduling, feedback, and software extension programs, in addition to material requirements planning. It provides the mechanism for evaluating the feasibility of a production schedule under a given set of constraints.

A textile company that has multi-point manufacturing and engages in global business needs more than just MRP and MRP-II like distribution requirements planning (DRP), has the ability to resolve material and capacity constraints, and quickly spreads the effects of problems both backwards and forwards. forward direction along the supply chain.

The Advance Planning and Scheduling System (APSS) includes both the material focus of MRP and the rapid response scheduling power of MRP-II.

Coordination of logistics flows

Workflow coordination can include activities such as procurement, order fulfillment, change implementation, design optimization, and financial exchanges, resulting in cost and time efficiencies. The results are profitable, fast and reliable supply chain operations.

IT helps maximize the value of the textile supply chain through the integration of supply chain operations within and outside the organization and the collaboration of supplier and customer actions based on shared forecasts. The Internet adds to IT’s contribution to supply chain management through the coordination, integration, and even automation of critical business processes. The new supply chain game system emerges as a result of Internet-driven business innovation.

Many supplier companies maintain demand data by style, size, fabric, and color to replenish inventory at the point of sale. The level of replenishment is determined by both parties after reviewing the sales history by product and the purchasing behavior of the community.

New business models:

Data mining and data warehousing

Data mining is the process of analyzing data from different points of view and summarizing it into useful information that can be used as a basis for monitoring and control, allowing companies to focus on the most important aspects of their business. It allows users to analyze data from many different dimensions, categorize it and summarize the identified relationships. In short, it is the process of finding correlations or relationships between dozens of fields in large relational databases.

Data warehousing is the repository of data and can be defined as a centralized data management and retrieval process. Data centralization maximizes user access and analysis.

electronic commerce

Electronic commerce can be B2B (Business To Business) and B2C (Business To Customer). B2C commerce is direct sales to consumers over the Internet. Whereas B2B marketplace can be defined as neutral internet-based intermediaries that focus on specific business processes, host electronic marketplaces and use various market making mechanisms to mediate transactions between businesses. B2B seems to be more prospective than B2C.

electronic commerce

Textile retail giants are adding an Internet shopping component to their offering. It has affected its distribution and storage infrastructure. As a result of going online, retailers have changed their supply chain strategy. High-volume products with stable demand are stocked in local stores, while low-volume products are stocked centrally for online purchase.

Companies prefer a direct route to consumers by closely examining the tastes, preferences, habits, and buying patterns of individual customers. Instead of waiting for consumers to visit their stores, retailers simply send them emails with offers. The Internet has facilitated a rapid response system. With the use of web-enabled technology, it is possible to have an automatic customer replenishment system.

Keeping a personal diary has been a pursuit of human society for many hundreds of years. In times past, men and women of knowledge carefully kept a record of their days, their achievements and their dreams. We owe a great debt of gratitude to each of them, as we have gathered much information about the lives of those in the past from many of those journal entries.

For some people, journaling is a natural extension of their daily lives. How many of us have picked up the family Bible to discover little snippets cut from the newspaper, flowers pressed between the pages, envelopes of letters or pictures safely stored for future generations to discover? I have certainly found such treasures in the more “ordinary” books on second-hand bookstore shelves and garage sales. It is always a surprise and a pleasure to discover them and then I feel a certain sadness that somehow these treasures have ended up in the hands of a stranger.

The unexpected gift of these objects has been a better understanding of our desire to record and preserve important memories and items, and while putting these treasures into the pages of a book isn’t exactly a journal, it is one component of this incredibly creative and satisfying pass. . -weather.

There are some basic skills when learning to write a journal, some of them are:

• Make the time and space to do it regularly. Whether you’re keeping a dream journal, a garden journal, a baby journal, a travel journal, or a personal journal of any kind, this step will make or break your experience. If you have to go so far as to make a ‘date’ with yourself, do it. At a minimum, set aside some time once a week to go through your calendar or diary and record the highlights or lowlights of your week. Even after many years, I am an irregular writer in my journal, but when I write and communicate with my wonderful partner, the value I receive from this is immense. It is always worth the effort.
• Start with something you’re passionate about. This makes it so much easier to write regularly, words and ideas seem to flow effortlessly, and you’ll enjoy reading through the pages of your journal entries. I keep more than one journal because I like to keep my gardening knowledge (successes and failures) separate from my conversations about personal and spiritual growth. I’m sure you’ll develop a process and style that works for you.
• Use materials that inspire and motivate you: My journals are ALWAYS beautiful to look at and wear. Also my writing instrument. I have a preference for a certain type of pen, a certain color and a certain texture of paper. This adds a lot to my enjoyment of the writing process and when I look back I can remember what it was about that particular book or pen that attracted me. I. The layers of enjoyment will build a strong relationship with your journaling process. Find out what you like, experiment with different things until you find the right combination of elements for you.
• learn from others: So many times, early in my journaling adventure, I wanted to peek inside the pages of other people’s journals. What did you do? How they did it? I was lucky that some of my friends were willing to share some of their pages with me and they introduced me to the idea of ​​drawing, painting, collage, coloring and doodling in addition to the words I was writing. This immediately reminded me of the newspaper clippings, pressed flowers and images I always found inside the pages of old books and this idea of ​​adding that visual texture to my journal was so enticing that I started right away. I am very grateful to my dear friends for opening my eyes to these new possibilities.

There are many reasons to keep a journal. There are many ways to keep a journal. If you are really worried about not knowing how to write a journal, there are many sources of inspiration and motivation, only you will open their eyes and hearts. I have recently discovered many books on the subject, as well as a number of inspiring examples that have been posted on the Internet. Use these resources if you feel stuck or uninspired and I’m sure it won’t be long before you enjoy keeping a journal of your days, dreams, successes and triumphs.

With all the media ablaze with news about cryptocurrency prices, you might be wondering how this affects a common man. Right at the heart of cryptocurrencies and other digital currencies is Blockchain technology.

There are various industrial and administrative problems that technology can solve for the common man. He owns a small business but often feels that transparency is lacking due to traditional methods of communication? Has he ever ended up with higher than usual medical bills? As a business owner, do you find it difficult to find legitimate candidates? These problems affect entrepreneurs, startups, small businesses, individuals and Blockchain technology seeks to provide solutions to make the life of a common man much simpler through simplified solutions.

banking

Banking in almost every country is still very much focused on paper-intensive transactions for any money transfers, record-keeping or other back-end functions. Blockchain technology can replicate this in a digital format and create a decentralized ledger that allows not only bankers but also customers to access a single source of information. This system allows banks to eliminate the chances of fraud, as bankers can digitally verify documentation and proof of ownership of assets in the Blockchain ledger, which can be accessed at any time in an unalterable format.

Identity theft is also a major problem in the banking sector, as citizens’ information is stolen and used to open fraudulent accounts for illegal activities. According to the Federal Trade Commission’s online complaint database, more than 13 million card fraud and identity theft complaints have been filed, and 3 million of these complaints were filed in 2016 alone. blockchain system, customers can directly see all the accounts they have in their name and immediately notify their respective banks if they detect any suspicious activity in their bank details. Some of the known examples include the IBM-backed Hyperledger Fabric project and UBS’s Utility Settlement Coin.

Health care

Blockchain technology can simplify healthcare in incredible ways and make medical data management much simpler. Making patient records widely accessible can make drug development research much more convenient and also reduces the implications of counterfeit drugs. Clinical trials and their results can be made available on a decentralized network, allowing healthcare specialists and researchers to conduct research and find solutions for better healthcare. Accenture is one of the largest companies that has started to offer innovative healthcare solutions for the healthcare industry for secure and fraud-free transactions.

Medicare frauds can also be reduced through blockchain billing management as the billing system can be fully automated without any reach of middlemen committing fraudulent activities. With more than 56 million people under Medicare as of 2017, the government has been defrauded of more than $1.3 billion through fraudulent activities by rehabilitation centers and home health care services. Blockchain systems can effectively protect citizens seeking medical assistance from healthcare providers overcharging for services offered through fraudulent billing practices. Centralized data not only helps medical professionals deliver treatment based on patient and family history, but also eliminates the chances of a patient incorrectly remembering past symptoms or disorders.

Public records

One of the most important civic administration functions of a government is to record all information about its citizens. This includes information about individuals and companies regarding their assets and activities. Most of the information recorded is recorded in paper databases, which makes data management extremely difficult even in developed countries.

Blockchain-based systems like Ubitiquity can encrypt all public records into a digital ledger to prevent citizen data from being tampered with by fraudulent activities. Identity theft is a problem that can be very difficult for management to deal with and digitizing all public information to make it tamper-proof can help prevent such instances of criminal activity.

Vote

One of the biggest limitations of the voting system in almost every country is that, even today, voters must be physically present at voting booths to cast their ballots and can make things difficult for people who need to travel on voting days. . More importantly, there is no way to verify poll results for the average citizen.

Blockchain development companies like Followmyvote are coming up with solutions that seek to make online voting a reality. It will allow citizens to view accurate ranking and poll results information and various other statistics publicly. It also leads to safer voting for citizens of countries in internal or external conflict and criminal activities to force citizens to vote for specific candidates can be completely prevented.

Business Recruitment

Companies of all sizes struggle to find the right staff. Through blockchain technology, it is possible for companies to verify the credentials of all applicants through a digital database. Blockchain technology can be applied to create a decentralized database of professionals with verified qualifications in a secure ledger that companies can refer to for hiring candidates. Learning Machine is a New York-based company looking to address this problem by focusing on recording verifiable information about workers.

Tax or employment-related fraud accounts for 34% of all identity theft as of 2016, and a blockchain system makes the hiring process for any business much more secure, as a business would have access only to valid candidates, which reduces the risk of hiring fraudulent employees. . It also helps applicants by speeding up the hiring process and helping them find jobs they are eligible for and have a smooth application process.

The use of blockchain technologies helps both individuals and businesses, and also protects personal information while making important data publicly visible. Although blockchain has the best application in cryptocurrencies, its use can also be extended to other sectors to provide meaningful solutions to citizens around the world.

Nowadays, people of all ages are becoming very conscious about their appearance! Being presentable and updated is the need of the hour. To look great and glamorous, putting on fashionable clothes and makeup is not enough until it is complemented with the right type of accessory. Only chunky jewelry, stylish bags, cool looks, trendy belts, scarves, stylish tattoos for women and cufflinks, ties, purses, wallets can enhance your outfit and make you look smarter.

You must be smart enough to select your accessory from a wide range of fashion accessories depending on the occasion and the weather. The list of accessories is endless, but the most important are:

jewelry

Jewelry is just as important as clothing. Putting on jewelry that complements the clothes you are wearing requires basic knowledge, to play out its inherent charm.

Skillful use of gems and jewels affects the change in the entire dress. You need to break the color monotony of business clothes so that the jewelry reflects the career and suits the personality. Understated jewelry is best for interviews such as small studs with a matching pendant, chunky jewelry for college students, long chandeliers and dainty skinny necks for cocktail parties, and heavy traditional Indian jewelry for any festival or wedding.

Let your jewelry speak the language of fashion!

Shoes

Usually, men and women buy shoes without thinking about whether the fashion shoes I am buying will go with my outfit or not. Shoes are that vital part of our daily dress that can spoil the whole look if we wear them inappropriately with our clothes.

Formal shoes are worn at any formal event as women should wear leather sandals with high heels to match formal attire while sandals with shiny finish and high heels for evening parties. Wearing leather shoes with formal attire will give your man a classy and stylish look.

Trousers

You need to have a different bag for different occasions but you don’t know what kind of bag for each event, we are here to help you.

School bags vary in size, are made of lightweight material like nylon, and are durable. It is designed simple and cute. Office bags are elegant and sophisticated. Leather is the appropriate material and the design that suits your office clothes is good. They must be worn on your shoulders.

Simple, plain oversized bags are perfect for a typical outing with friends. Handbags are also used, as it can be used both as a handbag and as a shoulder bag. Beach bags should have vibrant colors, floral designs, and should give a refreshing effect to the eyes. These bags are made of waterproof fabrics.

Bags for nights out and formal gatherings are stylish, small and practical. These bags are so elegant that they can be embellished with sequins or beads and more importantly contrasted with the color of the dress to catch the eye.

So start experimenting with accessories with the help of the basics given here and create your own style statement!

Wouldn’t it be great if you could eat as much as you wanted and still lose weight?

In fact, you can when you know what foods to eat to lose weight fast. Just keep in mind that you want to maintain good nutrition while losing weight. Although there are many dietary aids on the market, your best option for staying healthy while losing weight is to eat fresh, nutritious foods.

Reduce or eliminate salt

During the first week of the diet, you can lose up to 8 to 10 pounds, depending on how much excess weight you have. This initial weight loss will come primarily from excess water in your system, which will go away if you reduce or eliminate most of the salt in your meals. In the following weeks, you should see a weight loss of 1 to 2 pounds per week, following a moderate diet.

Eat raw fruits and vegetables

Even if you’re not a vegetarian, you can lose weight quickly by eating as many raw vegetables as you like to keep you comfortable after meals. Also, you can eat a moderate amount of lean meat and fish for your protein. You can eat raw fruit for dessert.

avoid soft drinks

If you can, avoid soda altogether and drink as much water as you like. Switching to plain water may seem unpleasant for a few days, but if you drink pure, filtered water, you’ll soon begin to enjoy it. You’ll be pleasantly surprised at how quickly and consistently excess body fat melts away.

If you have a considerable amount of weight to lose, we recommend that you consult your doctor. Be sure to avoid any extreme diets. You may be tempted to try a fast weight loss diet. If you do, do it for only a short time to jump start your weight loss.

moderation in your diet

To stay healthy and maintain your weight loss over time, you should aim for moderate but steady weight loss. There are so many good, nutritious foods available that you don’t need to resort to fads to lose weight fast. They are not healthy anyway.

Select your food well and you will lose weight while maintaining good nutrition. Losing a lot of weight, burning a lot of body fat is not just about dieting. You can lose weight quickly through extreme dieting, but in such cases you will most likely gain all the weight back.

lifestyle change

What you should aim for is a lifestyle change, even if it just means cutting out foods that have excess fat and excess sugar.

Losing weight doesn’t have to be difficult. Once you make up your mind, you can gradually modify your eating habits, such as including plenty of raw vegetables in your diet. Salads can be very tasty once you learn what you like best. Then naturally you will include them in your main meals. The same goes for fruits.

You can eat almost all the raw vegetables and raw fruits you like and still lose weight. Raw fruits and vegetables are great snacks between main meals.

Discover the healthy foods you like

A great secret to dieting is to eat only the foods you like. Start experimenting, learn which natural weight loss foods you like best and add them to your weight management arsenal.

Another great tip is to avoid adding extra fat in your food preparation. Opt to bake instead of fry. You will see great results over time.

Decide to gradually change your eating habits. Learn to enjoy healthy, low-fat, nutritious foods. When you do this, you will be able to maintain your new weight level without any special effort. And you will be much healthier in balance.

While there are plenty of weight loss aids you can buy, your best bet for long-term results will be your new, smarter eating habits. To achieve long-term weight management, you need to learn the basics of good nutrition so you can manage your long-term weight and long-term health.

working out

You don’t need to go into long and arduous exercise routines to lose weight. But you’ll see results much faster if you include moderate exercise in your new healthy lifestyle.

Women in sports is not a new phenomenon, but the rate at which women’s athletic performance has improved is one such phenomenon.

Each and every year we are now seeing women’s athletic records in all sports being broken and then broken again. The reasons are many, more women involved in sports from a young age, a more competitive environment in women’s sports, better training methods and better knowledgeable coaches.

I am the father of three daughters and a son who has been playing sports for the last 20 years or so. If you’re from the baby boomer era, you might be able to relate. There always seemed to be a training difference between the successful men/boys coaches and the successful girls/women coaches. Not so much in terms of what defensive or offensive system was run, but generally the personality of the coaches, whether male or female, was different. In recent years, this has changed. Pat Summit is as tough on her girls as any other man, and today she is the mentor of many successful female coaches. The competitive nature of women’s sports has caused the competitive personalities of both female coaches and female players to grow to a level of some equality among the men of the sporting clan.

The only area of ​​women’s athletics that has evolved more recently is the specification of training for the female athlete. Coaches, trainers, doctors have all worked together to realize that women’s athletic training needs require a different program than men’s. One of the best examples is the knees, women in sports suffer a much higher number of ACL injuries. In university basketball 4 times more than boys, in gymnastics 3 times more. The reasons are many, there are anatomical differences in the composition of the muscular and skeletal area of ​​the knee that some doctors consider to be the main cause, proper physical training can improve the strength of the internal and external muscles that protect the knee.

Today’s women’s sports programs, today’s parents of female athletes, they all want their teams, their daughters, to perform to the best of their athletic potential. Take the time to find out how you, as a coach or the mom or dad of that athlete, can ensure you have a fitness program designed to protect and enhance the physical attributes of the female athlete.

Figuring out which QuickBooks payroll option is right for your business can be quite a daunting task; especially with all the payroll options that are now available. We all know one thing: if you have employees, you have to pay them! That is easy.

However, determining which QuickBooks payroll option is the right solution for your business is a different story – let’s take a look at the options available:

Intuit Online Payroll – Internet-based and totally removed from your QuickBooks desktop company data file. It comes in two versions – Basic and Plus.

• Essential includes the ability to process an unlimited number of payrolls each month, includes free direct deposit, or allows you to print checks and check stubs on your own printer, directly from the online system; electronic tax payments, quarterly and year-end tax returns, including W-2 forms. Pricing starts at $25.00 per month for a single employee, additional employees at $1.50 each, and if you file taxes in more than one state, each additional state is $12.00 per month.
• Plus includes all of the above plus E-File & Pay is available for federal and most state taxes and forms. When E-File is not available in a state; ready-to-sign forms or worksheets are available. Pricing starts at $39.00 per month for a single employee, additional employees at $1.50 each, and if you file taxes in more than one state, each additional state is $12.00 per month.

Basic Payroll – all of your payroll data lives in your QuickBooks file, which is extremely important if you want a good job cost. It comes in two versions: up to 3 employees and unlimited employees. Basic Payroll does not provide the ability to generate quarterly and year-end tax returns, including W-2 forms. You will need to do this manually or work with an accountant or bookkeeper.

• Up to 3 employees allows you to create paychecks for up to 3 employees at a time of your choosing (weekly, biweekly, monthly, etc.) and provides instant access to the latest federal and state payroll tax updates. The current price is $129.00 per year and as of August 23, 2010 it will be $124.00.
• Unlimited employees allows you to create paychecks for an unlimited number of employees at a time of your choosing (weekly, biweekly, monthly, etc.) and provides instant access to the latest federal and state payroll tax updates. The current price is $229.00 and as of August 23, 2010 it will be $249.00.

Enhanced Payroll – all of your payroll data lives in your QuickBooks file, which is extremely important if you want good job costing without duplicate data entry. It comes in two versions: up to 3 employees and unlimited employees.

• Up to 3 employees allows you to create paychecks for up to 3 employees at a time of your choosing (weekly, biweekly, monthly, etc.), provides instant access to the latest federal and state payroll tax laws via the Internet, performs a Track when payroll tax payments are due Complete federal and most state payroll tax forms, including W-2 and 1099 forms File federal and state payroll tax forms electronically without additional cost. Current price is $249.00 per year; however, as of August 23, 2010 the price will be $274.00.
• Unlimited employees allows you to create paychecks for an unlimited number of employees at a time of your choosing (weekly, biweekly, monthly, etc.), provides instant access to the latest federal and state payroll tax laws via the Internet, Track when payroll tax payments are due Complete federal and most state payroll tax forms, including W-2 and 1099 forms File federal and state payroll tax forms electronically at no additional cost. Current price is $349.00 per year; however, as of August 23, 2010 the price will be $374.00.

Assisted Payroll offers the best of both worlds and includes the convenience of having all of your payroll data on your QuickBooks company file while someone else (Intuit) handles your taxes and files your tax returns, including W-Forms. two. It comes in two versions: Assisted and Assisted Plus.

• assisted your payroll is integrated into your QuickBooks company data file, you choose when you want to pay your employees (weekly, biweekly, etc.), enter your employees’ time across multiple jobs, send your payroll data to Intuit, and they are responsible for paying your taxes, filing your tax returns, and completing your W-2 forms (for an additional fee). Current pricing starts at $60.00 per month; however, as of August 23, 2010 it will start at $69.00 per month.
• Plus assisted includes all the features of assisted payroll and also includes direct deposit (no charge), payroll for additional states (no charge), W-2 processing at no additional charge. Current pricing starts at $115.00 per month; however, effective August 23, 2010 it will increase to $135.00 per month.

Some of the most common interview questions for an investment banking interview include (some are a bit tricky, but they DO come up very often, increasingly as a means of narrowing down candidate lists as the graduate job market in finance it becomes more difficult):

1. How many degrees (if any) are there in the angle between the hour and minute hands of a clock when it is a quarter past three? [Typically asked during investment banking interviews for entry level investment banking graduate jobs]
2. Find the smallest positive integer that leaves a remainder of 1 when divided by 2, a remainder of 2 when divided by 3, a remainder of 3 when divided by 4,… and a remainder of 9 when divided by 10 [Asked during interviews for quantitative finance jobs]
3. Two standard options have exactly the same characteristics, expect one to have a long expiration and the other to have a short expiration. Which has higher gamma? [Typically asked during interviews for bank derivatives trading jobs]
4. How is the delta of an option calculated? [Asked during investment banking interviews for derivatives trading jobs]
5. When can hedging an options position make you take on more risk? [Typically asked during interviews for trading jobs]
6. Is it better for you to use the implied standard deviation or the historical standard deviation to forecast volatility? Why? [Asked during interviews for quantitative finance jobs]
7. Describes “duration” and “convexity”. Describe its properties and uses. [Typically asked during investment banking interviews for graduate investment banking jobs]
8. Two players A and B are playing a game of marbles. Each player has one red and one blue marble. They present a marble to each other. If they both show red, A wins $3. If they both show blue, A wins $1. If the colors do not match, B wins $2. Is it better to be A or B, or does it matter? [Asked during interviews for quantitative finance or derivatives jobs]
9. How do you “value” yourself? Here “value” means in financial terms [Typically asked during interviews for MBA finance jobs or experienced banking hires]
10. What sets you apart from other candidates we might hire? [Typically asked during investment banking interviews for graduate investment banking vacancies]
11. If you could take a car trip across the country with three people, who would you choose? Why? [Typically asked during interviews for corporate finance / mergers & acquisitions banking jobs]
12. Talk about an action you like or hate and why [Asked by job interviewers for any accounting, finance or job!]
13. What is the difference between default risk and prepayment risk? [Typically asked during interviews for credit jobs / risk management jobs]
14. How would you move Mount Fuji? [Typically asked during investment banking interviews for consulting jobs or graduate accounting jobs]
15. Estimate annual car demand for car batteries [Typically asked during interviews for corporate finance jobs, mergers & acquisition banking jobs or consulting jobs]

Many years ago, the great John Paul Getty, who at one time held the title of being the richest man in the world, made the statement: “Lease what depreciates – Buy what appreciates” as a basic philosophy that should be follow prudent companies. Most of us in the leasing industry keep the statement in our arsenal as a method of convincing companies to lease their equipment.

But what does it really mean? Let’s break down the statement into its two components and discuss why it makes a lot of sense.

First, “Buy what you appreciate” Simply put, it means owning assets that increase in value. Prudent entrepreneurs generally live by the rule of increase that is related to continuous growth. Revenue growth, company size growth, and net worth growth.

Very few assets that produce income and contribute to the growth of a company appreciate their value. For example, production equipment that costs $100,000 today may be worth only $60,000 or $70,000 a year from now. The team can actually reduce costs by 20% and increase efficiency by 30%; however, if purchased outright, it will actually reduce the company’s net worth over time.

Assets are depreciated at a preset rate ranging from 10% to 50%, depending on the class they are in. In year 1, the depreciation amount falls under the 50% rule, which means that only half of the depreciation can be used as an expense. The net effect is a very slow depreciation for tax purposes and an erosion of the company’s net worth over time.

Secondly, “Rent what depreciates”, refers to transferring ownership of any asset whose value decreases over time to a third party, also known as a leasing company. From an accounting standpoint, leased equipment is considered off-balance sheet financing, meaning it does not appear as a liability on the balance sheet. This speeds up the tax effect of a lease as, if the lease is properly structured, the payments are considered an expense and are amortized at 100% from day 1. Off-balance sheet financing has the effect of improving financial ratios, as debt to equity, since debt is not included on the balance sheet.

The business model of most leasing companies is based on adding multiple assets to the financial statements, thus focusing on huge depreciation expenses. Leasing companies thrive by adding assets to their books, and in turn fill a great need for organizations that acquire assets.

One final note. Many companies have a strong propensity to own equipment, a kind of pride in ownership. It should be noted that if the purchase of a piece of equipment is secured by a bank loan or line of credit, they do not actually own the equipment until the final payment is made. In fact, they hold title to the equipment and show the depreciated value as an asset, but the equipment is not owned until the loan is paid in full.

Will companies acquire equipment through a loan? Absolutely. Will companies use leasing as a means of acquiring equipment? Absolutely. The purpose of this article is to take a closer look at the statement made by Mr. Getty many years ago, “Lease what depreciates – Buy what appreciates,” and to look at ways to acquire equipment from a different perspective. .